(1) Section 76A of the Principal Act is amended by inserting the following after subsection (2):

"(3)

(a) In this subsection -

(i) ‘accounting policy’, ‘a change in accounting policy’, ‘accounting standard’, ‘retrospective’ and ‘opening reserves’ shall be construed in accordance with generally accepted accounting practice;

(ii) ‘relevant period’ means the accounting period beginning on the first day of the period of account in which the change in accounting policy, referred to in paragraph (b), is adopted for the first time.

(b) This subsection shall apply to a change in accounting policy other than on the adoption of -

(i) an accounting standard for the first time, or

(ii) an amendment of an accounting standard for the first time.

(c) Subject to the Tax Acts, an amount representing the retrospective effect of a change in accounting policy which is recognised in opening reserves (howsoever designated) for a period of account in accordance with generally accepted accounting practice shall be taxable or deductible, as the case may be, in computing the profits or gains of a company for the relevant period for the purposes of Case I or II of Schedule D.